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The U.S. Securities and Exchange Commission (SEC) has moved Canary Capital’s spot SUI ETF application into its “institution of proceedings” phase, marking a critical advancement in the ETF approval process. This step has sparked growing excitement in the crypto space, with analysts predicting that SUI could hit a new all-time high as early as August.
SEC Begins Formal Review of Canary’s SUI ETF
After a series of delays, the SEC has officially begun its review of the SUI ETF proposal submitted by Canary Capital. This ETF, if approved, would become the first spot ETF tied to the SUI blockchain, a Layer-1 protocol that has recently gained strong institutional attention.
Canary Capital originally submitted the application in March, registering the fund in Delaware and filing the required S-1 documentation. The latest SEC move signals a shift from preliminary delays to a structured review process, placing SUI in the spotlight for potential market transformation.
Growing Institutional Interest in SUI
Canary’s application is not the only SUI ETF proposal under consideration. Asset manager 21Shares has also entered the race, filing its own proposal and highlighting its goal to expand exchange-traded access to the Sui ecosystem. 21Shares has further strengthened its involvement by forming a strategic partnership with the Sui Network, emphasizing its long-term commitment to Layer-1 blockchain innovation.
Though the final outcome remains uncertain, the SEC’s acceptance of these proposals for formal review indicates a growing recognition of SUI’s market relevance. Investor sentiment appears increasingly bullish, especially following the SEC’s earlier greenlight of the Bitwise Crypto Index ETF, which includes SUI alongside more established cryptocurrencies like Bitcoin and Ethereum.
SUI Futures Market Hits Record High
The anticipation surrounding the ETF approval has already affected SUI’s performance in derivatives markets. According to data from Glassnode, SUI’s open interest in futures markets has climbed to a record $1.2 billion. This makes SUI the sixth-largest cryptocurrency by open interest, trailing only Bitcoin, Ethereum, Solana, XRP, and Dogecoin.
This rise in futures activity suggests that both retail and institutional traders are positioning themselves for a potential breakout. Increased demand in the derivatives market often precedes major price moves in the spot market, and that may be exactly what’s brewing for SUI.
Analysts See Rally Toward New Highs in August
Technical analysts are now aligning their outlooks with bullish expectations. Crypto strategist “Scient” recently pointed out that SUI appears to be forming a new base, which could be the foundation for a strong upward trend. He noted that the coin may consolidate for a short period before climbing toward a new all-time high.
At the time of writing, SUI is trading at approximately $3.95, staying well above its 200-day moving average of $2.73. The Relative Strength Index (RSI) stands at 66, a level that reflects growing momentum without entering overbought territory. This technical setup supports the idea that SUI still has room to move higher.
If SUI breaks the psychological resistance around $4.00, analysts see potential upside targets ranging from $4.20 to $5.00. In the event that the SEC grants approval for the ETF and broader crypto sentiment remains favorable, projections as high as $5.50 to $6 are gaining traction.
What Could Go Wrong?
Despite the optimistic sentiment, there are still hurdles ahead. The SEC remains cautious with spot crypto ETFs, and it’s not guaranteed that SUI will receive approval in this round. Regulatory concerns around investor protection, market manipulation, and custodial frameworks may cause delays or rejections.
Moreover, macroeconomic conditions—such as interest rate decisions and global market uncertainty—could also weigh on crypto prices, potentially limiting SUI’s ability to maintain upward momentum even with ETF news.
Final Thoughts
The progression of Canary Capital’s SUI ETF application to the formal SEC review stage has added fresh energy to the SUI market. With institutional players entering the scene and technical indicators flashing bullish signals, many traders are betting that SUI could enter a new growth phase in August.
While regulatory uncertainty remains, the momentum behind SUI—fueled by ETF anticipation, strong futures market participation, and rising investor interest—may be enough to push the token to new highs in the coming weeks.
